Quick answer
Texas has lower average 1BR rent ($1,327/mo vs $1,680/mo). State income tax: Texas (None) vs Colorado (4.4%) — on a $120K salary that's $5,280/year difference.
State Comparison · 2026
Colorado vs Texas
Side-by-side on state income tax, rent, home prices, climate, and top metros — with specific dollar numbers for every claim.
Last updated: April 23, 2026
Colorado vs Texas at a Glance
| Metric | Colorado | Texas |
|---|---|---|
| Avg 1BR rent (major metros) | $1,680 | $1,327 ✓ |
| Avg median home price | $743K | $379K ✓ |
| Cheapest city | Colorado Springs ($1,450) | El Paso ($1,050) ✓ |
| Priciest city | Boulder ($1,850) | Austin ($1,650) |
| State income tax | 4.4% | None ✓ |
| Avg walkability | 57/100 ✓ | 45/100 |
| Cities tracked | 3 | 7 |
✓ marks the lower or more favorable value. Averages use the major metros we track in each state.
State Income Tax: Real Savings
What the rate gap actually looks like in your paycheck. Lower rate: Texas (None).
Salary $80K
$3,520
/year saved in Texas
Salary $120K
$5,280
/year saved in Texas
Salary $200K
$8,800
/year saved in Texas
Calculation uses the effective state rate difference × gross salary. Doesn't include property tax, sales tax, or federal impact.
Deep Dive: Each State
Colorado (CO)
Tax reality
Colorado has a flat 4.4% state income tax — lower than California or New York but not zero. The TABOR amendment caps annual state revenue growth, which occasionally triggers tax refunds (a few hundred dollars per taxpayer) but also starves state services. Property tax is low (~0.5% effective).
Top cities (3 tracked)
Top drawbacks
- ✕Altitude takes 3-6 weeks to adjust to and permanently affects endurance sports performance vs sea level. Some people never fully adjust.
- ✕Winter driving the I-70 corridor to ski resorts is regularly miserable. Traction laws can close passes entirely, and Friday/Sunday traffic in season is 3-5 hour crawls for a 90-minute drive.
- ✕Water is structurally tight. Denver specifically has growing supply concerns as the population expands and Colorado River allocations contract. Homes with big lawns are increasingly a liability.
Texas (TX)
Tax reality
Texas has no state income tax — on $100K that's roughly $5,000-$9,000/year you keep vs California. The catch: Texas property tax averages 1.6-2.3% annually, among the highest in the US. For renters, it's a pure win. For homeowners, a $450K home costs you $7,200-$10,300/year in property tax.
Top cities (7 tracked)
Top drawbacks
- ✕Summer heat is genuinely dangerous — 100°F+ days stretch from June through September, and the grid has failed multiple times (Uri 2021, summer 2023). Outdoor time is limited to early morning or after sundown.
- ✕Property taxes are the trade-off for no income tax. On a $450K home you'll pay $7,500-$10,500/year in property taxes — the highest in the country alongside New Jersey and Illinois.
- ✕Car dependency is near-total outside a few Austin and Houston neighborhoods. You will drive everywhere, including to the grocery store. Expect $400-$600/mo in all-in car costs.
Frequently Asked Questions
Is Colorado or Texas cheaper to live in?
Texas has lower average 1BR rent across major metros — $1,327/mo vs $1,680/mo in Colorado, a $353/mo difference. Home prices: Texas median is $379K vs $743K.
Colorado vs Texas: which has lower state income tax?
Texas has lower state income tax (None) vs 4.4% in Colorado. On an $80K salary that's $3,520/year in savings. On $200K, savings grow to $8,800/year.
Should I move from Colorado to Texas?
Colorado has a flat 4.4% state income tax — lower than California or New York but not zero. The TABOR amendment caps annual state revenue growth, which occasionally triggers tax refunds (a few hundred dollars per taxpayer) but also starves state services. Property tax is low (~0.5% effective).
What are the best cities in Colorado vs Texas?
Colorado's largest metros include Denver, Colorado Springs, Boulder. Texas's largest metros include Austin, Houston, Dallas. Cost of living varies significantly within each state — a Colorado suburb can be 40% cheaper than its flagship city, and vice versa.